Mississippi Center for Justice: Know Your Rights

Oil Disaster Recovery

Your Rights, Your Risks

The explosion of the Deepwater Horizon oil Platform on April 21st has continued to pour a massive amount of oil into the Gulf of Mexico, making land fall in parts of Louisiana, Mississippi, and Alabama and severely impacting wildlife, fishing, and related industries. Despite the containment cap, oil is leaking into the Gulf at a rate of 20,000 to 40,000 barrels a day. As a result, individuals and businesses may suffer damages including:

Property Damage

Loss in Property Value

Loss off Profits and Earning

Loss of Commercial Use of Natural Resources

Personal Injury

Residents and businesses, however, need to exercise caution in the aftermath of this disaster to ensure that their initial actions do not affect their future legal rights.



Law Suits and BP claims

You must first file a claim through BP’s claims process and follow the administrative procedure before you can file a law suit.

1. BP Claims

BP claims are made through the company rather than through a government entity. Under the Oil Pollution Act, BP is required to pay for

• Property damage
• Net loss of profits and earning capacity
• Subsistence loss and natural resource damage
• Removal and cleanup costs
• Cost of increased public services
• Net loss of government revenue

BP has stated on their website that they will accept and evaluate all claims for bodily injury due to exposure to oil or disbursant or due to injury in the clean up process to the Attorney General’s Office and on their website; however, these are not covered under the claims process set up under the Oil Spill Pollution Act, and MCJ does not know how these will be handled. You will need to provide medical records, medical bills, or pharmacy records to support the claim.

BP claims may be made by:

Phone at 1-800-440-0858,

Mail to: ESIS, One Beaver Valley Road, Wilmington, DE 19803, or

Online at: www.bp.com/secure/iframe.do?categoryId=9033722&contentId=7062138

Documents need to prove loss of income:

• Tax records
• Trip tickets
• Wage loss statements
• Deposit slips
• Boat registrations
• Copies of your current fishing license

Deckhands and others that work on a cash-only basis can also submit claims. They will need to provide photo ID and a copy of a pay stub or another document showing how much money they earn. They will also need to provide a phone number for their captain or manager to confirm employment.

Commercial economic loss claims may require additional business specific records. Property damage claims can require photographs and replacement or cleaning receipts. Larger property damage claims may require on-site inspection by a claim adjuster. Loss of rental claims can include prior occupancy rates, cancellations, tax records, and bookkeeping records. The process works as follows:



Once your supporting documentation is received, your claim will be evaluated, and you will be notified if an advance payment will be provided for your claim.



The advance payment will be up to the equivalent of one month lost income, based on documentation you provide. The advance is not based on actual income, and you may receive supplemental payments if documented losses are larger than the amount of the interim advance payment.

If you were given an interim advance payment for loss of income or net profits before June 1, you are eligible for a second payment. The second interim advance payment will be for the same amount as the first payment you received. No check will be reduced. Individuals and businesses will receive their second payment about 30 days after their initial advance payment was received. For example, if you received a payment on May 15, you will receive a second interim advance payment about June 15. If you are receiving your first interim advance payment in June, the claims center will communicate with you about any further possible payments. BP will continue to evaluate whether additional payments are appropriate because claimants remain out of work due to the spill.

If you have losses that are larger than the amount of any interim advance payment, you may speak to a claim adjuster to discuss those losses. If you provide documentation that demonstrates the losses actually incurred are larger than the total amount of interim advance payments received, then you will receive a supplemental payment for the difference. This payment will be provided by a claim adjuster after talking with the individual or business owner.

Help after you file a claim

You may call 1-800-573-8249 to check on the status of a claim if you have a claim number and have not heard from a claim adjuster. You should be prepared to provide your name, address and claim number so that the claim can be more easily located.

Mississippi Claims Offices

Bay St. Louis (Hancock County) 1171 Hwy 90 Bay St. Louis, MS 39520 Biloxi (Harrison County) 920 Cedar Lake Rd Suite K

Biloxi, MS 39532 Pascagoula (Jackson County) 5912 Old Mobile Highway Suite 3 Pascagoula, MS 39581

Accepting payment from BP before the full extent of your damage is known may prevent you from filing lawsuits seeking compensation in the future. Be cautious and exercise judgment when signing documents. Make sure that the documents indicate a partial payment and not a waiver or release of your rights. It is advisable that an attorney of your choosing reviews all documents prior to signature.

BP has 90 days to respond to your claim. If BP fails to process your claim within 90 days or BP denies your claim or you are unsatisfied by BP’s financial offer, you have a right to seek payment from the Oil Spill Liability Trust Fund. Congress created the trust fund after the Exxon Valdez spill to cover removal costs or damages when responsible parties are unknown or refuse to pay. Claims must be submitted to the Coast Guard’s National Pollution Funds Center (NPFC) (http://www.uscg.mil/npfc/Claims/default.asp). You have three years from the incident to file a claim with the Oil Spill Liability Trust Fund. There is a $1-billion cap on expenditures from the trust fund per incident and the NPFC processes claims in the order they are received.

If you accept money from the trust fund, you cannot later file a lawsuit against any party to recover costs or damages which were the subject of the compensated claim. If payment is received from another source, you must reimburse the fund.

If BP denies your claim or does not offer an adequate amount and you do not receive funds from the Oil Spill Liability Trust Fund, you may attempt to recover for your losses through a law suit.

2. Law Suits

a) Lawyer Solicitation:

A lawyer, or his representative, may not contact you to solicit employment in person or by telephone or e-mail, unless you have previously contacted the law firm. Licensed attorneys may advertise on television and radio and may contact potential clients in writing if communication is clearly marked “solicitation material.” Also, only attorneys licensed in Mississippi may file lawsuits in Mississippi unless they have associated with a local attorney or legal aid organization. The Mississippi Bar Association’s attorney directory available online at https://www.msbar.org/lawyerdirectory.php can tell you who is licensed in Mississippi. If you believe you have been improperly solicited by a lawyer, you should report it immediately by contacting the Consumer Assistance Program of the Mississippi Bar at (601) 948-2344.

b) Retainer and Representation: A written retainer, or representation agreement, will ensure a clear understanding between you and your attorney and will protect your rights. It will explain what issues the attorney is willing to address and what they are willing to do. You have the right to decide what your goals are in the legal process.

The agreement should state that the attorney will help you collect upon and enforce any judgments (victories) they obtain on your behalf. If you lose a case, they are not required to appeal unless the agreement says so.

If the agreement states that the attorney is representing you on a contingency basis, this means the attorney is entitled to a percentage of whatever you recover from the oil company.

You always have the right to terminate your relationship with the attorney and employ another one. However, the original attorney may still be entitled to attorney’s fees if they are awarded or given as a contingency fee to the extent of the work performed.

c) Statute of Limitations: You have three years to file a lawsuit based on negligence in Mississippi. You do not have to retain a lawyer or file a lawsuit immediately. You may choose to wait weeks or a few months until you can compile your records, document losses, and learn more about your situation and your legal rights.

d) Class Action:

A class action is a law suit on behalf of a group of people who have been harmed in a similar way by the same entity. The sum paid at the end of a successful class action is divided amongst the class members. Joining a class-action lawsuit against BP may prevent you from receiving short-term compensation from BP. BP is unlikely to consider your claim if you are a party in litigation against them and the Trust Fund, mentioned above, will not consider a claim that is the subject of a lawsuit.

e) Punitive Damages: You may hear a lot about the $2.5 billion in punitive damages a jury awarded to injured parties following the Exxon Valdez spill. That verdict, however, did not stand. Last year, the Supreme Court ruled that punitive damage awards in maritime cases could not exceed the amount of compensatory damages awarded. That ruling reduced the Exxon Valdez award to $507.5 million. While this is obviously still a very large punitive damage award, Exxon did not begin writing checks until 20 years after the spill in November 2009, and some of the plaintiffs received less than $100 in punitive damages.



Government Assistance

1. The U.S. Small Business Administration is making low-interest loans available to Mississippi small businesses near the Gulf of Mexico suffering financial losses following the Deepwater Horizon oil spill. These loans are likely to provide vital economic assistance during this difficult time. Keep in mind, however, that borrowers receiving money from BP may have to use their claim payments to repay the loans.

2. You may be entitled to government benefits and income maintenance such as food stamps and unemployment benefits.

a) If you are an employee who has recently become unemployed due to the Gulf oil spill, then you might qualify for 26 weeks of standard state unemployment benefits followed by up to 73 weeks of extended unemployment benefits (Emergency Unemployment Compensation or EUC). You may apply by calling 1-888-844-3577 or going to www.mdes.ms.gov . Self-employed individuals are not eligible for unemployment benefits.

b) To apply for food stamps (SNAP) or other family economic assistance (TANF,) you can contact the Mississippi Department of Human Services Division of Economic Assistance at 1-800-948-3050 or (601) 359-4810 or via the internet at www.mdhs.state.ms.us/ea_application.

c) If you have trouble applying for such benefits or need assistance appealing denial of benefits, you may call the MS Center for Legal Services (or the MS Center for Justice specifically for TANF monies for child care.)



Loan Forbearance

If you are behind on loans for your home, vessel, equipment, or business, or if you fear that you will fall behind on payments, contact your lender immediately so that they can attempt to work with you. The Federal Home Affordable Modification Program can enable loan forbearance or modification for your mortgage. The Mississippi Center for Justice’s Jackson MS Office and the Mississippi Center for Legal Services can assist you in preventing foreclosure of your home and seizure of your other assets as a result of decreased income due to the oil.



Eviction

If you are unable to pay your rent due to decreased income as result of the oil disaster, contact your landlord immediately, hopefully before falling behind, so that they are aware of your circumstances and may be able to give you a grace period.

Your landlord must give you written notice of eviction before proceeding and must obtain a warrant from Justice Court to be served by the local sheriff before they can force you to move out. If you need assistance avoiding eviction, you may contact the MS Center for Legal Services.



Clean up Contracts

BP is hiring local individuals in the clean up process. BP’s contracts for this type of work originally included a paragraph prohibiting workers from telling anyone about what they have seen, heard, or experienced beyond protecting a trade secret and to an extent which could be harmful for workers. They are no longer allowed to include this paragraph. Do not sign a contract which contains such a paragraph. Attorneys for the Mississippi Center for Justice are available to review your contracts and make sure they are fair.

If you plan to come in contact with oil or disbursant, make sure that you wear a respirator. If this happens as part of work on behalf of BP or related companies, they should provide you with a respirator to use while working.



Income Tax

Funds received from BP claims will be taxable. BP or a related payor should send claims proceed recipients an IRS Form 1099. If they do not withhold taxes, then recipients should pay quarterly estimated taxes to avoid a big tax bill in April 2011. North Mississippi Rural Legal Services is available to help with any related questions or problems that you have.

Legal Services Contact Numbers

MS Center for Legal Services: 1-800-498-1804

MS Center for Justice:

Foreclosure Prevention and Child Care Subsidies: 601 352-2269

Other Oil-related Needs: 228 435-7284

North MS Center for Legal Services Low Income Taxpayers Clinic: 1-800-898-8731, ext. 2120

The Mississippi Center for Justice is a home grown, non-profit public interest law firm that pursues racial and economic justice through advocacy for systemic change. When it comes to the worsening BP oil drilling disaster in the Gulf of Mexico, we at the Mississippi Center for Justice share the nation’s concern about the long-term impact on the environment and local economies. We are keeping a particularly watchful eye on the legal and policy needs that are arising in low-income and ethnic communities and are drawing upon the experience we developed after Hurricane Katrina, and the network of allies who have worked with us since that time, to respond to what may be the most serious environmental and economic crisis in our nation’s history. Our staff on the Mississippi Gulf Coast is working with community-based advocates, legal services, and national allies to ensure that our coastal communities, and those residents who earn their living in maritime industries, are protected.

Special Thanks to the Louisiana Justice Center and the Mississippi Alabama Sea Grant Consortium

Oil Disaster RecoveryYour Rights, Your RisksThe explosion of the Deepwater Horizon oil Platform on April 21st has continued to pour a massive amount of oil into the Gulf of Mexico, making land fall in parts of Louisiana, Mississippi, and Alabama and severely impacting wildlife, fishing, and related industries. Despite the containment cap, oil is leaking into the Gulf at a rate of 20,000 to 40,000 barrels a day. As a result, individuals and businesses may suffer damages including:Property DamageLoss in Property ValueLoss off Profits and EarningLoss of Commercial Use of Natural ResourcesPersonal InjuryResidents and businesses, however, need to exercise caution in the aftermath of this disaster to ensure that their initial actions do not affect their future legal rights.Law Suits and BP claimsYou must first file a claim through BP’s claims process and follow the administrative procedure before you can file a law suit.1. BP ClaimsBP claims are made through the company rather than through a government entity. Under the Oil Pollution Act, BP is required to pay forProperty damageNet loss of profits and earning capacitySubsistence loss and natural resource damageRemoval and cleanup costsCost of increased public servicesNet loss of government revenueBP has stated on their website that they will accept and evaluate all claims for bodily injury due to exposure to oil or disbursant or due to injury in the clean up process to the Attorney General’s Office and on their website; however, these are not covered under the claims process set up under the Oil Spill Pollution Act, and MCJ does not know how these will be handled. You will need to provide medical records, medical bills, or pharmacy records to support the claim.BP claims may be made by:Phone at 1-800-440-0858,Mail to: ESIS, One Beaver Valley Road, Wilmington, DE 19803, orOnline at: www.bp.com/secure/iframe.do?categoryId=9033722&contentId=7062138Documents need to prove loss of income:Tax recordsTrip ticketsWage loss statementsDeposit slipsBoat registrationsCopies of your current fishing licenseDeckhands and others that work on a cash-only basis can also submit claims. They will need to provide photo ID and a copy of a pay stub or another document showing how much money they earn. They will also need to provide a phone number for their captain or manager to confirm employment.Commercial economic loss claims may require additional business specific records. Property damage claims can require photographs and replacement or cleaning receipts. Larger property damage claims may require on-site inspection by a claim adjuster. Loss of rental claims can include prior occupancy rates, cancellations, tax records, and bookkeeping records. The process works as follows:Once your supporting documentation is received, your claim will be evaluated, and you will be notified if an advance payment will be provided for your claim.The advance payment will be up to the equivalent of one month lost income, based on documentation you provide. The advance is not based on actual income, and you may receive supplemental payments if documented losses are larger than the amount of the interim advance payment.If you were given an interim advance payment for loss of income or net profits before June 1, you are eligible for a second payment. The second interim advance payment will be for the same amount as the first payment you received. No check will be reduced. Individuals and businesses will receive their second payment about 30 days after their initial advance payment was received. For example, if you received a payment on May 15, you will receive a second interim advance payment about June 15. If you are receiving your first interim advance payment in June, the claims center will communicate with you about any further possible payments. BP will continue to evaluate whether additional payments are appropriate because claimants remain out of work due to the spill.If you have losses that are larger than the amount of any interim advance payment, you may speak to a claim adjuster to discuss those losses. If you provide documentation that demonstrates the losses actually incurred are larger than the total amount of interim advance payments received, then you will receive a supplemental payment for the difference. This payment will be provided by a claim adjuster after talking with the individual or business owner.Help after you file a claimYou may call 1-800-573-8249 to check on the status of a claim if you have a claim number and have not heard from a claim adjuster. You should be prepared to provide your name, address and claim number so that the claim can be more easily located.Mississippi Claims OfficesBay St. Louis (Hancock County) 1171 Hwy 90 Bay St. Louis, MS 39520 Biloxi (Harrison County) 920 Cedar Lake Rd Suite KBiloxi, MS 39532 Pascagoula (Jackson County) 5912 Old Mobile Highway Suite 3 Pascagoula, MS 39581Accepting payment from BP before the full extent of your damage is known may prevent you from filing lawsuits seeking compensation in the future. Be cautious and exercise judgment when signing documents. Make sure that the documents indicate a partial payment and not a waiver or release of your rights. It is advisable that an attorney of your choosing reviews all documents prior to signature.BP has 90 days to respond to your claim. If BP fails to process your claim within 90 days or BP denies your claim or you are unsatisfied by BP’s financial offer, you have a right to seek payment from the Oil Spill Liability Trust Fund. Congress created the trust fund after the Exxon Valdez spill to cover removal costs or damages when responsible parties are unknown or refuse to pay. Claims must be submitted to the Coast Guard’s National Pollution Funds Center (NPFC) (http://www.uscg.mil/npfc/Claims/default.asp). You have three years from the incident to file a claim with the Oil Spill Liability Trust Fund. There is a $1-billion cap on expenditures from the trust fund per incident and the NPFC processes claims in the order they are received.If you accept money from the trust fund, you cannot later file a lawsuit against any party to recover costs or damages which were the subject of the compensated claim. If payment is received from another source, you must reimburse the fund.If BP denies your claim or does not offer an adequate amount and you do not receive funds from the Oil Spill Liability Trust Fund, you may attempt to recover for your losses through a law suit.2. Law Suitsa) Lawyer Solicitation:A lawyer, or his representative, may not contact you to solicit employment in person or by telephone or e-mail, unless you have previously contacted the law firm. Licensed attorneys may advertise on television and radio and may contact potential clients in writing if communication is clearly marked “solicitation material.” Also, only attorneys licensed in Mississippi may file lawsuits in Mississippi unless they have associated with a local attorney or legal aid organization. The Mississippi Bar Association’s attorney directory available online at https://www.msbar.org/lawyerdirectory.php can tell you who is licensed in Mississippi. If you believe you have been improperly solicited by a lawyer, you should report it immediately by contacting the Consumer Assistance Program of the Mississippi Bar at (601) 948-2344.b) Retainer and Representation: A written retainer, or representation agreement, will ensure a clear understanding between you and your attorney and will protect your rights. It will explain what issues the attorney is willing to address and what they are willing to do. You have the right to decide what your goals are in the legal process.The agreement should state that the attorney will help you collect upon and enforce any judgments (victories) they obtain on your behalf. If you lose a case, they are not required to appeal unless the agreement says so.If the agreement states that the attorney is representing you on a contingency basis, this means the attorney is entitled to a percentage of whatever you recover from the oil company.You always have the right to terminate your relationship with the attorney and employ another one. However, the original attorney may still be entitled to attorney’s fees if they are awarded or given as a contingency fee to the extent of the work performed.c) Statute of Limitations: You have three years to file a lawsuit based on negligence in Mississippi. You do not have to retain a lawyer or file a lawsuit immediately. You may choose to wait weeks or a few months until you can compile your records, document losses, and learn more about your situation and your legal rights.d) Class Action:A class action is a law suit on behalf of a group of people who have been harmed in a similar way by the same entity. The sum paid at the end of a successful class action is divided amongst the class members. Joining a class-action lawsuit against BP may prevent you from receiving short-term compensation from BP. BP is unlikely to consider your claim if you are a party in litigation against them and the Trust Fund, mentioned above, will not consider a claim that is the subject of a lawsuit.e) Punitive Damages: You may hear a lot about the $2.5 billion in punitive damages a jury awarded to injured parties following the Exxon Valdez spill. That verdict, however, did not stand. Last year, the Supreme Court ruled that punitive damage awards in maritime cases could not exceed the amount of compensatory damages awarded. That ruling reduced the Exxon Valdez award to $507.5 million. While this is obviously still a very large punitive damage award, Exxon did not begin writing checks until 20 years after the spill in November 2009, and some of the plaintiffs received less than $100 in punitive damages.Government Assistance1. The U.S. Small Business Administration is making low-interest loans available to Mississippi small businesses near the Gulf of Mexico suffering financial losses following the Deepwater Horizon oil spill. These loans are likely to provide vital economic assistance during this difficult time. Keep in mind, however, that borrowers receiving money from BP may have to use their claim payments to repay the loans.2. You may be entitled to government benefits and income maintenance such as food stamps and unemployment benefits.a) If you are an employee who has recently become unemployed due to the Gulf oil spill, then you might qualify for 26 weeks of standard state unemployment benefits followed by up to 73 weeks of extended unemployment benefits (Emergency Unemployment Compensation or EUC). You may apply by calling 1-888-844-3577 or going to www.mdes.ms.gov . Self-employed individuals are not eligible for unemployment benefits.b) To apply for food stamps (SNAP) or other family economic assistance (TANF,) you can contact the Mississippi Department of Human Services Division of Economic Assistance at 1-800-948-3050 or (601) 359-4810 or via the internet at www.mdhs.state.ms.us/ea_application.c) If you have trouble applying for such benefits or need assistance appealing denial of benefits, you may call the MS Center for Legal Services (or the MS Center for Justice specifically for TANF monies for child care.)Loan ForbearanceIf you are behind on loans for your home, vessel, equipment, or business, or if you fear that you will fall behind on payments, contact your lender immediately so that they can attempt to work with you. The Federal Home Affordable Modification Program can enable loan forbearance or modification for your mortgage. The Mississippi Center for Justice’s Jackson MS Office and the Mississippi Center for Legal Services can assist you in preventing foreclosure of your home and seizure of your other assets as a result of decreased income due to the oil.EvictionIf you are unable to pay your rent due to decreased income as result of the oil disaster, contact your landlord immediately, hopefully before falling behind, so that they are aware of your circumstances and may be able to give you a grace period.Your landlord must give you written notice of eviction before proceeding and must obtain a warrant from Justice Court to be served by the local sheriff before they can force you to move out. If you need assistance avoiding eviction, you may contact the MS Center for Legal Services.Clean up ContractsBP is hiring local individuals in the clean up process. BP’s contracts for this type of work originally included a paragraph prohibiting workers from telling anyone about what they have seen, heard, or experienced beyond protecting a trade secret and to an extent which could be harmful for workers. They are no longer allowed to include this paragraph. Do not sign a contract which contains such a paragraph. Attorneys for the Mississippi Center for Justice are available to review your contracts and make sure they are fair.If you plan to come in contact with oil or disbursant, make sure that you wear a respirator. If this happens as part of work on behalf of BP or related companies, they should provide you with a respirator to use while working.Income TaxFunds received from BP claims will be taxable. BP or a related payor should send claims proceed recipients an IRS Form 1099. If they do not withhold taxes, then recipients should pay quarterly estimated taxes to avoid a big tax bill in April 2011. North Mississippi Rural Legal Services is available to help with any related questions or problems that you have.Legal Services Contact NumbersMS Center for Legal Services: 1-800-498-1804MS Center for Justice:Foreclosure Prevention and Child Care Subsidies: 601 352-2269Other Oil-related Needs: 228 435-7284North MS Center for Legal Services Low Income Taxpayers Clinic: 1-800-898-8731, ext. 2120The Mississippi Center for Justice is a home grown, non-profit public interest law firm that pursues racial and economic justice through advocacy for systemic change. When it comes to the worsening BP oil drilling disaster in the Gulf of Mexico, we at the Mississippi Center for Justice share the nation’s concern about the long-term impact on the environment and local economies. We are keeping a particularly watchful eye on the legal and policy needs that are arising in low-income and ethnic communities and are drawing upon the experience we developed after Hurricane Katrina, and the network of allies who have worked with us since that time, to respond to what may be the most serious environmental and economic crisis in our nation’s history. Our staff on the Mississippi Gulf Coast is working with community-based advocates, legal services, and national allies to ensure that our coastal communities, and those residents who earn their living in maritime industries, are protected.Special Thanks to the Louisiana Justice Center and the Mississippi Alabama Sea Grant Consortium